Are Charities A Form Of Tax

My friend, who is properly employed, said,"I give 190 quid for charities annually."

Of course my friend earns good bag of lolly unlike me. So I asked him if the dear old Gov increases the tax and take that 190 quid off you, will he pay the same amount to charities.

Here we had to stop the conversation as he hit a rock, bigger than the whatsit.

This conversation started when both of us viewed a news clip about one of the ministers stating that the poor people in UK will have to depend on the charities during this recession.

Now here is what Charities Commission has to say about this:

The Charity Commission’s fourth Economic Survey of Charities demonstrates the continuing effect of the recession on charities in England and Wales. The key findings of the survey of 1,010 charities, carried out by MVA Consultancy, include:

59% of charities report having been affected by the downturn, up from 38% in September 2008 and 56% in September 2009. Of those affected, 62% have experienced a drop in income.

Larger* charities have been hit hardest, with 79% feeling the impact of the downturn and a third seeing an increase in demand for services. These charities are also more likely to predict a decrease in income than small and medium charities, with 28% anticipating a drop in funds compared with 14% of small and 16% of medium charities.

This disparity is also reflected when looking at the steps that charities have taken in response to the downturn, with 79% of the largest charities putting measures in place, compared to 31% of small charities.

Yet, 84% of all charities said they were optimistic about the outlook for the next year. This figure has increased from 69% expressing optimism six months ago.

Almost half of charities (47%) expect the recovery of the charity sector to lag behind that of the rest of the economy.

International, health and social service charities have been most affected by the downturn. 74%, 74% and 65% respectively of these types of charity report having felt the impact, compared with 59% of all charities.

19% of charities have seen an increase in demand for services in the last six months. This compares with 17% reporting an increase in demand in September.

45% of the charities surveyed fundraise from the public; this is the most important source of income for almost a quarter of all charities (23%).

Investment income continues to be the most affected, with 62% of charities with investments having seen a decrease in the past six months.

I know the Gov was giving tax relief for donations for charity as my dear friend explained. The disparity in the situation is quite clear. I think the donations for charities are a form of tax when a Minister says that the poor people in this country will have to depend on charities, as above "19% of charities have seen an increase in demand for services in the last six months. This compares with 17% reporting an increase in demand in September."

I rest my case




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